Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Recently, you sold short 700 shares of stock for at $66 a share. The initial margin requirement is 70 percent, and the maintenance margin is
Recently, you sold short 700 shares of stock for at $66 a share. The initial margin requirement is 70 percent, and the maintenance margin is 40 percent. The stock is currently trading at $53 a share. What is your rate of return on the short sale if you close out the position, and do you get a margin call?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started